In a major relief for the UT of J&K, the Central Government, on the recommendations of the Ministry of Home Affairs (MHA), has approved a comprehensive allocation of over Rs1,430 Cr for reconstruction of damaged public infrastructure and implementation of disaster mitigation measures across affected districts of the UT.
This significant development came to light during a high-level review meeting chaired by Chief Secretary, Atal Dulloo, which was attended by all Administrative Secretaries.
The meeting was convened to assess the progress of key reform-oriented financial initiatives such as Special Assistance to States for Capital Investment (SASCI) and SNA SPARSH, being monitored by the Finance Department and implemented across various departments of the UT Government.
During the meeting, Principal Secretary, Finance, Santosh D. Vaidya apprised the chair of several major milestones achieved by the UT in securing central financial assistance across multiple sectors.
He further informed that following the recent natural disasters, including cloudbursts in parts of the UT, an Inter-Ministerial Central Team (IMCT) had visited Jammu and Kashmir. Based on its assessment, the Ministry of Home Affairs recommended the declaration of these calamities as “severe” in nature, paving the way for the substantial allocation aimed at reconstruction of damaged infrastructure and adoption of long-term mitigation measures.
The Principal Secretary, Finance, presented a detailed status report outlining approvals received, expenditure incurred, and reform benchmarks achieved by the UT under various centrally sponsored and reform-linked schemes.
The Chief Secretary expressed gratitude to the Government of India and the Ministry of Home Affairs for the timely assistance, stating that the support would go a long way in strengthening the UT’s preparedness against future disasters, besides enabling large-scale reconstruction of damaged public assets, including roads, power infrastructure, and water supply systems.
He directed the concerned departments, particularly the Department of Disaster Management, Relief, Rehabilitation & Reconstruction (DMRR&R) and the School Education Department, to promptly identify mitigation works eligible under the approved funding and ensure their completion by August 2026, in accordance with scheme guidelines.
Emphasizing optimal utilisation of funds, the Chief Secretary called upon all departments to fully utilise the first instalment of Rs 944 Cr released under SASCI and ensure that at least one bill under pending Centrally Sponsored Schemes is processed through SNA SPARSH. He set a deadline of January 7, 2026, for achieving this target, with the Finance Department tasked to monitor progress on a daily basis.
He also stressed the need for early identification of projects for the next financial year under SASCI, urging departments to prioritise works that can be completed within a single financial year, as mandated under the scheme.
Providing an update on SASCI implementation, the Principal Secretary, Finance informed that 222 works across 27 departments had been approved, including 162 ongoing projects and 60 new works. Out of the approved allocation, Rs 944 Cr has been released as the first instalment, against which an expenditure of Rs758 Cr has already been recorded.
He urged the departments to fast-track implementation, particularly 95 projects currently showing zero expenditure, to ensure full utilisation of funds within stipulated timelines.
He also gave out that Government of India approved additional allocation under SASCI 2025-26 based on the progress made by J&K in utilizing the initial loan of Rs.1431 Cr. It was stressed that for claiming this additional allocation expediting ongoing capital investments and infrastructure works, progress in implementation of CSS in SPARSH mode and initiating Aadhar based payments for CSS, DBT schemes are essential.
The meeting was also apprised of fresh approvals under Part-II reforms, wherein Jammu and Kashmir has been covered under the Unity Mall initiative, applicable to Union Territories with legislatures. Under this initiative, the Government of India has approved special assistance of up to Rs200 Cr for establishment of Unity Malls in Srinagar and Jammu.
Significant progress has also been made in the mining sector, with the Mining Department notifying a new Minor Mineral Policy introducing an auction-based allocation mechanism along with other reform measures. In recognition of these reforms, the Government of India has sanctioned Rs100 Cr under the Mining Sector Reforms component.
Additionally, under the Digital Public Infrastructure initiative for agriculture, Jammu and Kashmir is implementing the Farmers’ Registry (Component-I) and Digital Crop Survey (Component-II). The UT has successfully achieved these milestones under the Digital Crop Survey, leading to approval of Rs60 Cr by the Government of India under this component.
The Chief Secretary took this occasion to reiterate the UT Government’s commitment to financial discipline, timely execution of reforms, and effective utilisation of central assistance to strengthen infrastructure, enhance resilience, and ensure sustainable development across Jammu and Kashmir.